A proposed agreement over the Strait of Hormuz would give Iran authority over all inbound vessel traffic through the waterway, according to The Straits Times, citing unnamed sources.
The report, published Wednesday, describes a deal that would place Iran in charge of managing and approving ships entering the strait. The arrangement is part of broader negotiations tied to the reopening of the passage, which has been a focal point of regional tensions.
Iran has said a deal is close but insists the United States must first meet its commitments before the strait fully reopens, per CNN. The U.S. has rejected any terms that would create "impediments" to navigation, CNBC reports, particularly those that would block American or Israeli vessels.
The developments have already moved markets. Oil prices rose sharply as traders weighed the potential for continued disruption or a managed reopening, according to CNA. The strait is a critical chokepoint for global crude shipments, and any change in its oversight carries significant economic weight.
The proposed framework, as described, would mark a major shift in how the waterway is administered. Currently, transit is governed by international maritime norms, with no single state holding veto power over inbound traffic. Handing that role to Iran would alter the balance of power in the region and could affect shipping costs and insurance rates for carriers.
The talks remain fluid, and the details of the deal have not been officially confirmed by any government. The U.S. position, as reported, suggests significant hurdles remain before any final agreement is signed.
Watch for official statements from Tehran and Washington in the coming days, as any confirmation of the reported terms could trigger further volatility in oil markets and shipping routes.
